Maui Land & Pineapple Co., which earlier this week announced appointments for its CEO and chairman positions, reported Thursday that its financial results swung to a profit of $1.8 million in 2022 on the strength of land sales and adjustments to its pension plan.
The Kapalua-based company lost $3.4 million in 2021.
Maui Land said its operating revenue jumped 69.4% to $21 million from $12.4 million.
The company said its earnings were helped by a $7.4 million adjustment to its defined benefit pension plan.
In the third quarter, Maui Land put $5.7 million into its defined benefit pension plan. In the fourth quarter the company completed a so-called pension lift-out of approximately 45% of its total pension plan participants. A lift-out reduces the overall costs associated with the selected segment of participants.
Maui Land said the lift-out annuitized pension benefits utilizing a third-party insurer at a cost of $14.5 million. The company recognized a noncash settlement charge of $7.5 million as a result of the lift-out. This was the second tranche of participants lifted out from the company’s defined benefit pension plan.
As a result of the pension-related moves, the company’s accrued retirement benefits decreased by $5.3 million, to $2.8 million in 2022 from $8.1 in 2021.
Maui Land said its comprehensive income for 2022, including its $1.8 million in net income and the $7.4 million pension gain, was $9.2 million. That compares with comprehensive income of $2.6 million in 2022, which included a $3.4 million net loss and a $6 million pension gain.
In June, Maui Land completed a $2 million sale of a 50-acre parcel in the Pulelehua area of West Maui. The parcel was sold to Maui County for use in the development of a regional park. The sale of this parcel satisfied the impact fee requirement for the future development of the company’s 800-acre parcel above Honoapiilani Highway, commonly known as Kapalua Mauka.
In May the company sold a 646-acre parcel in Kula, known as Omaopio, for $9.6 million. The parcel was sold to Hoopono LLC.
In December 2021, Maui Land entered into a $40 million purchase and sale agreement for a 46-acre parcel within Kapalua Central Resort. The company anticipates the deal to close this year.
On Monday, Maui Land appointed Hawaii native and real estate veteran Race Randle to be its new CEO and Scot Sellers to be chairman, effective April 1.
They will replace Warren Haruki, who currently holds both positions and has led the company for the past 14 years. Haruki will continue to serve as a senior adviser, assisting Randle and Sellers as they assume their new roles.
MLP develops, manages and sells real estate on Maui, where the company oversees 22,000 acres, including Kapalua Resort.
Shares of Maui Land rose 23 cents Thursday to $11 before the results were announced.
2022 net
$1.8 million
Year-earlier loss
$3.4 million
